Avery Dennison Corp. on Friday reported a lower third-quarter profit, largely due to expenses related to the sale of two units, but adjusted results beat Wall Street expectations.
The Pasadena labeling and packaging materials maker reported net income of $37 million (37 cents a share) compared with $58 million (57 cents) in the same period a year earlier. Revenue climbed 3 percent to $1.5 billion, with its Pressure-Sensitive Materials and its Retail Branding and Information Solutions units each seeing 4 percent sales gains.
The company earlier this sold its Office and Consumer Products and its Designed and Engineered Solutions businesses to CCL Industries of Toronto for $500 million. Results for the quarter included loss from discontinued operations equal to 25 cents a share.
Excluding one-time items, adjusted net income from continuing operations was 69 cents a share. Analysts surveyed by Thomson Reuters expected adjusted net income of 64 cents a share on revenue of $1.51 billion.
Avery Dennison now expects adjusted full-year earnings of $2.60 to $2.70 a share, up from its prior range of $2.50 to $2.70 a share. Analysts are expecting $2.60 a share.
Shares closed up $3.69 cents, or 8.4 percent, to $47.74 on the New York Stock Exchange.
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